News
TheBottomLineJune10
New Tax Tables - 1 July 2010
A reminder for all employers that new tax tables will come into effect from 1 July 2010. The new tax tables for weekly and fortnightly wages can be downloaded from our website on the link below or from the ATO website.
The 15 percent tax rate will now apply to income earned from $6,001 to $37,000, being raised from the previous limit of $35,000. The tax rate for those earning between $80,001 and $180,000 will be lowered from 38 to 37 percent.
Please note the tax tables available to download on the link below incorporate the Medicare levy with and without leave loading.
TheBottomLineBudgetFocus
Changes to Company Tax
In response to the Henry Tax Review the Federal Budget announced the company tax rate for eligible small businesses will be reduced from 30% to 28% from 2012/13. For other businesses the rate will be reduced to 29% from 2013/14 and to 28% from 2014/15.
TheBottomLineApril10
Year End Tax Planning
Individuals and businesses may want to consider several pro-active tax planning actions they can take prior to June 30. Businesses could:
- Prepay expenses such as rent & insurance
- Order & pay for stock in advance
- Consider upgrading equipment or computers
- Defer invoicing to after June 30
- Consider super contributions for directors/managers
- Write off any bad debts
- Making deductible donations
- Prepaying for work related conferences, seminars or course fees
- Purchasing work related subscriptions or uniforms (if applicable)
- Repairs or maintenance to rental properties (if applicable)
- Salary sacrificing income to your superannuation
For a full list click on the link below.
TheBottomLineMarch10
First Home Saver Accounts
If you are saving to buy or build your first home then you might want to consider a First Home Saver Account. These accounts offer a tax-effective way of saving through a combination of government contributions and concessional tax rates.
These accounts are taxed at a low rate of 15% which is remitted by the account provider. You do not need to declare any interest or other earnings in your account on your annual tax return.
Your savings are matched by a government contribution of 17% on amounts up to $5000 in a financial year. Eg. if you deposited $5000 into your home saver account the government will contribute $850. This limit will be indexed over time.
Funds from a first home saver account must be used to purchase or build your first home once you have saved for at least 4 years. If you open an account and then decide not to go ahead you will have to contribute the balance of your account to your superannuation fund.
TheBottomLineJan10
Fair Work Changes 1 January 2010
On 1 January 2010 a number of changes in workplace relations came into effect:
• The introduction of new National Employment Standards (NES)
• Commencement of modern awards to replace previous complex award system
• Many employers in state systems (NSW, QLD, TAS, SA) moving into national workplace relations system
• All employers in national system must provide new employees with the Fair Work Information Statement.
The Fair Work Act provides a safety net of enforceable minimum employment terms and conditions through the NES. These 10 minimum workplace entitlements apply to all employees and employers in the national workplace relations system, with some exclusions for casual employees.
These conditions include a maximum standard working week, the right to request flexible working hours, annual leave, personal/carer’s leave and community service leave, and notice of termination and redundancy pay.
TheBottomLineDec09
We Are Taking a Break!
The Accounting For Your Future & Out Sourcery office will be closing for the Christmas break from 25th December 2009 and reopening on 11th January 2010.
We will be in touch with clients who have payroll payments to process during this period, to put in place alternative arrangements. During the break you can continue to send us emails.
Have a great Christmas and New Year and thanks for your support throughout the year.
TheBottomLineNov09
Fringe Benefit Tax for the Festive Season
It is important to consider fringe benefits tax (FBT) obligations when organising office Christmas parties and gifts for your employees and associates this festive season. The costs associated with Christmas parties (such as food and drink) are exempt from FBT if:
- they are provided on a working day on your business premises and consumed by current employees,
- they are held off the business premises and the cost per head is less than $300,
- the cost per head for employee associates, such as partners, held on or off the business premises is less than $300 a head.
For Christmas gifts provided to an employee at a company Christmas party, the benefits are considered associated benefits, however, each benefit will be considered separately to determine if they are less than $300 in value. There is no FBT payable for the cost of clients who attend your Christmas party or any client gifts you may provide.
TheBottomLineOct09
Consolidating Your Super
Last month we spoke about finding your lost super, this month we focus on consolidating all your super accounts into one fund. There are numerous benefits to keeping your super in one place. Apart from only paying one set of fees, you will also be able to keep track of your retirement savings easily and choose the most suitable investment strategy for your super.
It is important to keep in mind any exit fees that may apply and to compare the benefits, investment performance and options of all your superannuation funds first to ensure you don’t lose any important benefits, like insurance.
If you do decide to consolidate your super funds, you will need to complete a Rollover Form available from your superannuation fund provider. These are often available to download from their website. All you will need is the name, address and your member number for the old fund/s.
Click on the link below for a list of common super providers and links to their forms.
TheBottomLineSept09
Finding your Lost Super
If you have changed jobs, addresses or names, or your fund has not received contributions for you for 5 years than you may be reported as lost by your super fund. To help people consolidate their super into one fund and save on fees, the tax office has set up a tool to look for lost super.
SuperSeeker helps people locate lost super online, by phone or by filling in a Searching for Lost Super form. The online tool can provide you with possible matches instantly by searching the Lost Members Register and other tax office records. All you will need is your name, date of birth and tax file number.
If SuperSeeker finds a possible match it will provide the name and contact details of the super provider that may have your lost super. You can then contact the super provider to give them your new contact details and talk about what to do with your super.
TheBottomLineAug09
Education Tax Refund
A quick reminder for parents with school children to keep their receipts for expenses related to their children's education to include in their 2009 personal tax return. Eligible parents will be able to claim up to 50% on expenses with a maximum of $750 for each child attending primary school and $1500 for each child undertaking secondary studies.
Eligible expenses for the Education Tax Refund include laptops, home computers, home internet connections, printers, education software, trade tools for use at school, school text books and stationery. Costs such as school and uniform fees, tutoring or membership costs are not eligible for the tax offset.
To see if you are eligible to claim the Education Tax Offset follow the link below or contact our office.
TheBottomLineJune09
Personal Tax Return checklist
As the 30th June has come and gone, once more, it is time to start organising yourself to get your tax returns lodged for 2009. Tax returns can be lodged as soon as you have gathered all your information. AFYF has access through the Tax Office for extensions on lodgement of tax returns for many clients up to 15 March 2010. So you can choose to lodge early or take advantage of the extensions offered. Whether you lodge now or later you will need to gather your income and expenses detail.
Click on the link below for the attached personal tax return checklist. Once you have gathered all relevant documentation please call our office to make an appointment or to check on your lodgement due date.
TheBottomLineMay09
Budget Overview
A “temporary collapse in revenue” has prompted a “program of responsible borrowing” and “longer term nation building projects” by the Rudd Labour Government, as announced in the Federal Budget. The government hopes that this will provide the stimulus needed for the economy, with the aim of bringing the budget back to surplus in the medium term.
The Budget should be considered as responsible, as it delivers for working families and invests in Australia's future. It funds a substantial $55 billion Working Families Support Package; meets the Government's commitments; and begins a new era of responsible long term investment to strengthen our economy, fight inflation, and meet our future challenges from a position of strength.
No significant tax changes were announced, although measures have been proposed to reduce tax concessions for high income earners in the form of superannuation reform and changes to the private health insurance offset. Contrary to speculation, the incentive for first home owners has been extended and so has the small business tax break. Reform of the tax system is high on the agenda but tax cuts announced in last year's Budget will be honoured.
Click on the link for more information.